RTS consider membership auction and weather

Russian exchange RTS has revealed that it is considering an
auction system for new clearing memberships, as well as
launching weather futures in October.

In an interview with FO Week, Evgeny Serdyukov, head
of futures and options market at the exchange, said that RTS is
considering the system as the exchange offers a maximum of 100
general clearing memberships, all of which are already
allocated. As a result, any potential membership is only
available through the sale of an existing members
membership. Serdyukov added that the system could be launched
as early as Q1 2008, as demand to join as a general clearing
member is very strong. Because we only allow a maximum of
100 general clearing members, and [RTS] only wants the biggest,
the largest and the most prestigious companies as general
clearing members and interest in joining is high,
Serdyukov said.

Serdyukov detailed the membership structure of the exchange,
adding that it also offers companies special clearing
membership. As part of this each company has the right to clear
two asset classes from commodity derivatives, stock derivatives
and currency derivatives, but the exchange limits a maximum of
25 members in each asset class. The exchange is currently
discussing whether the auction system would be applied to the
special clearing members.

Meanwhile, RTS will launch weather derivatives as it continues
its product development. The contract, which Serdyukov said
will be launched during October, will be based on the
temperature in Moscow, follows statements from then
vice-president Roman Guronov in early 2006 that it intended to
launch weather futures (see FO Week 12/02/2006).
Serdyukov said he expected the contract to appeal to Russian
energy producers who face unusual weather patterns in Moscow.
He added that the contract will be expanded to include other
geographical areas after, what Serdyukov described as, an
educational period was complete, but gave no indication of a
timetable.